Dutch Government Takes Control of Nexperia Over Security Risks

Dutch government takes control of Nexperia, citing security concerns over Chinese ownership and the need to protect Europe’s vital semiconductor industry

It was in an unusual and historic move that the Dutch government takes control of Nexperia, a Chinese-funded chipmaker, due to extreme concerns about company management and threats to European economic security. The action follows major developments in Europe's growing effort to protect its chip sector from foreign takeovers.

Wingtech Technology's Nijmegen, the Netherlands-based company Nexperia is the world's leading maker of car, smartphone, and consumer electronic semiconductors. The firm may be based in Europe but it is owned by Wingtech Technology, which is Chinese. The Dutch Ministry of Economic Affairs made the announcement on Sunday that it had used the rarely invoked Goods Availability Act to assume "effective control" of the activities of Nexperia.

Protecting Europe's Technology Base

The ministry clarified that the management of Nexperia "created the risk of disrupting the continuity and preservation at the European Netherlands of essential technological expertise and competences" across Europe. The loss of the expertise may risk economic security and tech autonomy in the most sensitive areas like automobile manufacturing and digital infrastructure.

Although the government did not detail any particular government concern, commentators frame the move within the larger Western initiative to decrease reliance on China for advanced technical components.

A Move Rooted in Geopolitical Tensions

The Dutch Government takes control of Nexperia over security risks that reflect deepening tensions between China and Western countries regarding the semiconductor industry. Semiconductors are critical in almost all new devices, and nations have also been clamping down on regulations to safeguard their supplies.

Wingtech's Chinese parent company, Nexperia, called the action by the Netherlands "an excessive geopolitical-bias-motivated interference rather than fact-based risk assessment." The company also referred to the move having been made on the basis of an "unfounded national security pretext."

Following the announcement that the Dutch government takes control of Nexperia, Wingtech’s shares plunged by 10% on the Shanghai Stock Exchange — the maximum allowed daily drop. The company confirmed that its control over Nexperia is now temporarily restricted but said production at Nexperia’s Dutch facilities would continue without interruption.

Court Proceedings and European Coordination

It announced that it would resort to legal action in order to protect the interests of its shareholders and is in active consultation with the government authorities. The Dutch government clarified that its measure empowers it to prevent or reverse company decisions which may be contrary to the Dutch or European interest.

It also asserted it's "in close contact" with the government of the Netherlands and will also be collaborating on the following measures in order to ensure the technological autonomy of Europe.

Western Restrictions Keep the Trend Going

It is not the second time either that Western governments have cast suspicion on Nexperia. The U.K. rejected Nexperia's bid to buy Newport Wafer Fab in 2023 on the basis of national security threats. The U.S. Commerce Department recently placed Wingtech in the list of Chinese firms eligible for export controls, claiming the activities of the company may compromise American national security.

China's Foreign Ministry reacted forcefully, calling on Western nations to "avoid politicizing economic and trade matters" and abide by rational rules of the market.

The Bigger Picture

The Dutch Government takes control of Nexperia and sends a clear message: Europe is prioritizing the security of its technological assets. As global competition over chip manufacturing intensifies, this move may inspire similar actions by other nations seeking to protect strategic industries.

Just as global chip shortages and supply disruptions are recent history, the Netherlands' action signals the start of the era of active economic defense—one in which the defense of tech is just as vital as the invention of tech.